n soon found to
be too radical a measure for success, either in the cabinet or Congress,
however well it may have accorded with Jefferson's utopian views. In the
budget of 1802 the internal revenue, $650,000, was, therefore, a
necessary item. The expenditures proposed were

Annual appropriation for interest and
principal of debt $7,100,000
Civil list $780,000
Foreign intercourse 200,000
Military and Indian Dept 1,420,000
Naval 1,100,000
-----------
$3,500,000 3,500,000
-----------
$10,600,000

In this budget the estimate for the military establishment was an
increase over that of Wolcott for 1801, which was $1,120,000. But the
Republicans in the House were not content with this arrangement. The
internal revenues were utterly distasteful to them. They had been laid
against their protest and collected under military menace. They were of
those Federal measures of which they would have none. John Randolph,
chairman of the Committee of Ways and Means, reported, March 2, 1802,
against the entire system of internal duties, in the old words of the
Pennsylvania radicals, as vexatious, oppressive, and peculiarly
obnoxious; as of the nature of an excise which is hostile to the genius
of a free people, and finally because of their tendency to multiply
offices and increase the patronage of the executive. The repeal was
imperative upon the Republican party. On April 6, 1802, the act was
repealed and the surplus of the budget stripped from it, without Mr.
Gallatin's consent, certainly, but also without protest from him.

The prosperity of the country continued. The impost duties for the
fiscal year ending September 30, 1802, rose to $12,280,000, the sales of
the public lands to $326,000, and the postage to $50,500, a total of
$12,656,500, and left in the Treasury, September 30, 1802, the sum of
$4,539,675. This large increase in the Treasury did not in the least
change Mr. Gallatin's general plan, and his budget for 1803 was based on
his original scale of a permanent revenue of $10,000,000, to correspond
with which the estimates of the preceding year were reduced. The fiscal
year closed September 30, 1803, with a balance in the Treasury of
$5,860,000. This situation of the finances was fortunate in view of
secret negotiations which t